Trilateral critical mineral deals, wider air pact key to India-UAE ties ahead, says UAE Minister
He also pushed for increased seat entitlements under the India-UAE air services agreement where demand far exceeds available capacity, arguing the revision is critical to support the next phase of trade, tourism and investment.
Also read: Pvt sector deals key to boosting India-UAE ties, UAE Minister says
“The next phase of the partnership could involve a trilateral approach where India and the UAE jointly invest in a third country. There are many such opportunities in critical minerals… I want the partnership to go there,” the UAE minister told ET.
Securing Supply Chains
Al Marri was speaking on the sidelines of an event organized by Investopia Global, a UAE-based investment platform, in partnership with the Confederation of Indian Industry, on Thursday.
He said the partnership could start with the supply and processing of critical minerals such as nickel, cobalt, copper and lithium, which are needed for renewable energy, batteries, semiconductors and data centres. “Processing these minerals is extremely important, and so is securing their resources. This is where the UAE can participate through investments and ensure reliable supply chains for the future of energy, future industries and future industries. For example, lithium is essential for batteries, copper is critical for data centres, and cobalt and nickel play an important role in semiconductors.”
As global supply chains are being redrawn due to geopolitical risks, the minister said India and the UAE must work together to redesign supply routes and explore new opportunities and investments.
ET BureauHe added that the next phase is now not just about business growth but also about joint investments, joint investment platforms, industrial partnerships and financial connectivity. Making a new claim for revising the India-UAE bilateral air services agreement, Al Marri said that the seat right under the current agreement has been fully used and expanding capacity should be seen as an economic necessity rather than just an aviation issue.
Also read: India-UAE ties move from joint investment to joint innovation and artificial intelligence: UAE special envoy
Current limits are pegged at 66,000 seats per week for flights to and from Dubai and 50,000 seats for Abu Dhabi. “The capacity under the current agreement has reached saturation… It is important to prioritize the issue and look at it from a broader perspective. Aviation policy needs to be linked to tourism and the economy.”
This should also be looked at through the lens of job creation,” Al Marri said. Al Marri said limited seat capacity is contributing to higher airfares and consumers bear the brunt of it. Citing a study by the Observer Research Foundation, he said a 1% increase in seat capacity from India to the UAE would reduce airfares by about 0.2%. “I think it is also important to look at this from the consumer’s perspective. Today, UAE is home to more than 4 million Indians and this community plays a very important role.
In many second and third tier cities and states in India, services remain inadequate. “We need to look at connecting them better because more connectivity brings more people together,” he said, adding that while aviation has helped India and the UAE achieve the $100 billion bilateral trade target, it should also play an equally important role in helping achieve the next milestone of $200 billion.
Al Marri held talks with Andhra Pradesh chief minister N Chandrababu Naidu and Gujarat chief minister Bhupendra Patel, as well as Commerce Minister Piyush Goyal and Civil Aviation Minister Ram Mohan Naidu.
